What is a ‘Convertible Debenture’?
Convertible debentures are the debentures that are capable of converting into shares at a future date. These are to be considered in calculating the diluted EPS and thereby increases the number of shares. hence the EPS reduces because of Convertible debentures.
What is discount on issue of debentures?
State the meaning of ‘Debentures issued as a collateral security’.
Explain the guidelines of SEBI for creating Debenture Redemption Reserve.
What is ‘Capital Reserve’?
Describe the steps for creating Sinking Fund for redemption of debentures.
Under which head is the ‘Debenture Redemption Reserve’ shown in the balance sheet?
Explain the different types of debentures?
Can the company purchase its own debentures?
What is meant by conversion of debentures? Describe the method of such a conversion.
What do you mean by Ratio Analysis?
List the techniques of Financial Statement Analysis.
State the meaning of financial statement analysis?
What are various types of ratios?
Distinguish between Vertical and Horizontal Analysis of financial data.
What are limitations of financial statement analysis?
What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover
State the meaning of Analysis and Interpretation.
List any three objectives of analysing financial statements?
The liquidity of a business firm is measured by its ability to satisfy itslong-
term obligations as they become due. What are the ratios used forthis purpose?
Prepare the format of balance sheet and explain the various elements of balance sheet.
The average age of inventory is viewed as the average length of time inventory is held by the firm or as the average number of days’ sales in inventory. Why?
What are limitations of financial statement analysis?
Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?
What are various types of ratios?
Describe the different techniques of financial analysis and explain the limitations of financial analysis.
How will you disclose the following items in the Balance Sheet of a company;
(i) Loose tools
(ii) Uncalled liability on partly paid-up shares
(iii) Debentures redemption reserve
(iv) Mastheads and publishing titles (v) 10% debentures
(vi) Proposed dividend
(vii) Share forfeited account
(viii) Capital redemtion reserve
(ix) Mining rights
(x) Work-in-progress
Distinguish between Vertical and Horizontal Analysis of financial data.
Explain in detail about the significance of the financial statements.
Explain how common size statements are prepared giving an example.